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Royalty Split Agreement Template for England and Wales

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Key Requirements PROMPT example:

Royalty Split Agreement

"I need a Royalty Split Agreement to establish a 60/40 revenue share between my publishing company and three independent authors for their upcoming fantasy novel series, with quarterly payments starting from March 2025."

Document background
A Royalty Split Agreement is essential when multiple parties have rights or interests in intellectual property that generates revenue. This contract type is commonly used in creative industries where collaboration is frequent and revenue sharing is necessary. Under English and Welsh law, the agreement provides a framework for revenue distribution, detailing calculation methods, payment schedules, and reporting requirements. It's particularly important for protecting rights holders and ensuring clear understanding of revenue sharing arrangements, while providing mechanisms for dispute resolution and accounting transparency.
Suggested Sections

1. Parties: Identification and details of all parties involved in the royalty split arrangement

2. Background: Context of the agreement and relationship between parties

3. Definitions: Key terms used throughout the agreement including relevant legislation definitions

4. Royalty Split Terms: Core terms defining the split percentages and calculation methods

5. Payment Terms: Timing, method, and currency of royalty payments

6. Accounting and Reporting: Requirements for financial reporting and transparency

7. Term and Termination: Duration of agreement and termination conditions

8. Governing Law and Jurisdiction: Specification of English and Welsh law as governing law and related jurisdictional provisions

Optional Sections

1. Audit Rights: Right to audit royalty calculations and payments - recommended for high-value agreements

2. International Rights: Provisions for international royalty collection and cross-border considerations

3. Sub-licensing: Terms for handling sub-licensed works and revenue sharing arrangements

4. Dispute Resolution: Specific procedures for handling disputes, including mediation and arbitration options

5. Confidentiality: Terms regarding the confidentiality of financial information and agreement terms

6. Data Protection: Compliance with UK GDPR and Data Protection Act 2018 requirements

Suggested Schedules

1. Schedule 1: Works Schedule: Detailed list of works covered by the agreement

2. Schedule 2: Royalty Calculation Method: Detailed methodology for calculating royalties including formulas and examples

3. Schedule 3: Payment Details: Banking and payment information for all parties

4. Schedule 4: Reporting Template: Standard format for royalty reporting and accounting statements

5. Schedule 5: Relevant Legislation: List of applicable laws and regulations affecting the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Copyright, Designs and Patents Act 1988: Primary legislation governing intellectual property rights in the UK, including copyright protection, licensing, and royalty arrangements

Trade Marks Act 1994: Legislation governing trademark protection and licensing, relevant for brand-related royalty agreements

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract, important for royalty arrangements involving multiple parties

Unfair Contract Terms Act 1977: Controls the use of unfair terms in contracts, ensuring balance and fairness in royalty agreements

Consumer Rights Act 2015: Relevant if any party to the royalty agreement is acting as a consumer rather than in a business capacity

Income Tax Act 2007: Governs the taxation of royalty income for individuals in the UK

Corporation Tax Act 2009: Governs the taxation of royalty income for companies in the UK

Value Added Tax Act 1994: Determines VAT treatment of royalty payments and licensing arrangements

Competition Act 1998: Ensures royalty agreements do not contain anti-competitive provisions or abuse market dominance

UK GDPR and Data Protection Act 2018: Governs the processing of personal data that may be involved in royalty reporting and payment arrangements

Arbitration Act 1996: Provides framework for alternative dispute resolution in royalty agreement conflicts

Civil Procedure Rules: Governs court procedures if legal action is required to enforce royalty agreement terms

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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